An Empirical Study On The Impact On The Cost Of Capital And The Debt Maturity Structure Of Corporate Equity

Environmental pollution is getting worse. This problem not only impedes thedevelopment of the social ecnomy, but also influences the social environment of human beingseriously. In order to break through the restrict of the resource environment, China is activelypropelling a development model of cyclic economy and low carbon economy to realizesustainable development. Disclosing environmental information from a company is not onlyas a bridge to the communication with the stakeholders, but also important reflections ofsocial responsibility and the duty to protect the environment. Environmental informationdisclosure plays an important role in environmental protection, especially for the heavypolluting companies like chemical industry. It has already been a big part of the company’sdevelopment strategy. At the same time, the research of environmental information disclosurefrom academia goes deeper. But academia prefers standardized research. There is hardly anyresearch about the economic consequences that caused by environmental informationdisclosure. For this, it has a dual purpose for academic and practice to study the effect ofrelevant variable on cost of equity capital and debt maturity structure by choosing the publiccompanies of chemical industry from the view of corporate finance.This article chooses the report data from2011to2013in a public companies of chemicalindustry of China to finish the empirical research about the effect of environmentalinformation disclosure on cost of equity capital and debt maturity structure from the view ofcorporate finance which is based on detailed analysis for present situation of environmentalinformation disclosure system and environmental information disclosure in chemical industryin China. It also does descriptive statistics and analysis of regression of relevant variable. Wefind something by the research. First, the better of environmental information disclosure inthe public companies of chemical industry develops, the lower of cost of equity capital is.Second, the development of environmental information disclosure is good for debt maturitystructure. Third, if the public companies of chemical industry has an independentenvironmental information disclosure, it will be better for cost of equity capital and debtmaturity structure.At last, the articl gives some advice. First, the government should help set up betterenvironmental information disclosure system. Second, companies can use supplementativereport to disclose environmental information. Third, according to industry requirement, thecompany can train professional talents to improve the quality of environmental informationdisclosure. Forth, companies should set up the company image and get the brand effect.